Bill would codify 25% cap on state tax wage garnishments for low-wage earners

Delegate Hernandez told the subcommittee that current Virginia law allows tax authorities to garnish up to 100% of wages to collect state tax debts, an unusually broad power. He said the Department of Tax had already limited garnishments to 25% through stakeholder meetings and that HB 488 would codify that practice and expand protections for low-wage workers earning no more than 40 times the minimum wage.

"What this bill does is codify that very good practice and create stronger protections for some of the lowest wage earners in Virginia," Hernandez said, framing the change as consumer protection for vulnerable households.

Committee action: members moved and seconded to report HB 488; the motion carried by voice vote and the bill was recommended for reporting.

Context: supporters said the limit brings Virginia closer to common practice elsewhere and provides immediate relief to workers who lose discretionary wages to tax collections. Some members raised fiscal and administrative questions, but no formal fiscal objection prevented the committee from recommending the bill for reporting.

Next steps: the bill will be sent forward with a favorable recommendation for consideration by the full Senate or relevant floor committee.